Rail Deal

Mar 09, 2014 (LBO) – A 600 million US dollar contract to extend a rail track from Beliatta to Kataragama in Sri Lanka’s South has been awarded to China National Machinery Import and Export Corporation (CNMIEC), a media report said. People from whom land had been acquired has already been compensated, the reported quoted Matara-Kataragama Railway extension project director V. Amaratunga as saying.

Sri Lanka’s The Sunday Times newspaper said another 28 kilometre section of the track from Matara to Beliatte is already being built by the same company on a 272 million US dollar contract.

“We have decided on the Chinese company as the Exim Bank (of China) has agreed to grant a loan for the project,” the newspaper quoted Transport Minister Kumara Welgama as saying.

The railway line beyond Matara would go in parallel to an expressway though an initial plan was to build the track along the coast, the report said.